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Agrium Falls After Profit Disappoints Amid Grain-Price Decline

23:09PM Oct 02, 2014

Agrium Inc., the biggest farm retailer, dropped in extended trading after forecasting earnings for the third quarter that fell short of estimates from analysts as grain prices declined.

The shares fell 4.6 percent to $83.90 at 5:16 p.m. after the close in New York. Earnings from continuing operations are expected to be 45 to 55 cents a share, Calgary-based Agrium said in a statement after the end of regular trading. The average of 22 estimates compiled by Bloomberg was for 68 cents.

U.S. farming incomes are down this year as a record harvest depresses corn prices.

Fourth-quarter profit will be similar to net income a year earlier, Agrium also said. The expansion of the company’s Vanscoy potash plant and work at its Redwater nitrogen- fertilizer facility are on track, the company said.

Agrium last year fended off an attempt by activist investor Jana Partners LLC to force the company to separate its retail business from its fertilizer operations.